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Income Tax Bill


Income Tax Bill
Part 15 — Income Tax Acts definitions etc
Chapter 1 — Definitions

465

 

(b)   

by reference to any class or description of stock exchanges (including

one framed by reference to any authority or approval given in a country

outside the United Kingdom).

(3)   

An order under this section may—

(a)   

contain incidental, supplemental, consequential and transitional

5

provision and savings, and

(b)   

vary or revoke a previous order under this section.

940     

Meaning of “research and development”

(1)   

This section has effect for the purposes of the provisions of the Income Tax Acts

which apply this section.

10

(2)   

“Research and development” means activities that fall to be treated as research

and development in accordance with generally accepted accounting practice.

   

This is subject to subsection (3).

(3)   

The Treasury may by regulations specify activities which—

(a)   

are to be treated as being “research and development” for the purposes

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of this section, or

(b)   

are to be treated as not being “research and development” for the

purposes of this section.

(4)   

The regulations may—

(a)   

make provision by reference to guidelines issued by the Secretary of

20

State, and

(b)   

contain incidental, supplemental, consequential and transitional

provision and savings.

(5)   

Unless otherwise expressly provided, “research and development” does not

include oil and gas exploration and appraisal.

25

941     

Meaning of “unit trust scheme”

(1)   

In the Income Tax Acts “unit trust scheme” has the meaning given by section

237 of FISMA 2000.

   

This is subject to subsection (2).

(2)   

The Treasury may by regulations provide that a unit trust scheme within the

30

meaning given by section 237 of FISMA 2000 is not to be a unit trust scheme for

the purposes of this section if the scheme is within a specified description.

(3)   

The regulations may contain incidental, supplemental, consequential and

transitional provision and savings.

(4)   

This section does not apply for the purposes of section 558 (approved

35

charitable investments).

 
 

Income Tax Bill
Part 15 — Income Tax Acts definitions etc
Chapter 2 — Other Income Tax Acts provisions

466

 

Chapter 2

Other Income Tax Acts provisions

942     

Scotland

(1)   

In the application of the Income Tax Acts to Scotland—

“assignment” means an assignation,

5

“estate in land” includes the land, and

“surrender” includes renunciation.

(2)   

In the application of the Income Tax Acts to Scotland, any reference to property

or rights being held on trust or on trusts is a reference to the property or rights

being held in trust.

10

943     

Sources of income within the charge to income tax or corporation tax

In the Income Tax Acts a source of income is within the charge to income tax

or corporation tax if that tax—

(a)   

is chargeable on the income arising from it, or

(b)   

would be so chargeable if there were any income arising from it,

15

and references to a person, or income, being within the charge to income tax or

corporation tax are to be read in the same way.

944     

Application of Income Tax Acts to recognised investment exchanges

The Commissioners for Her Majesty’s Revenue and Customs may by

regulations make provision securing that provisions in the Income Tax Acts

20

which contain references to the Stock Exchange apply—

(a)   

in relation to all other recognised investment exchanges (within the

meaning of FISMA 2000), or

(b)   

in relation to such of those exchanges as may be prescribed,

for such purposes and subject to such modifications as may be prescribed.

25

945     

References to married persons, or civil partners, living together

Individuals who are married to, or are civil partners of, each other are treated

for the purposes of the Income Tax Acts as living together unless—

(a)   

they are separated under an order of a court of competent jurisdiction,

(b)   

they are separated by deed of separation, or

30

(c)   

they are in fact separated in circumstances in which the separation is

likely to be permanent.

946     

Relationship between rules on highest part of total income

(1)   

This section makes provision about the relationship between rules requiring

particular income to be treated as the highest part of a person’s total income.

35

(2)   

It has effect for the purposes of the Income Tax Acts except sections 535 to 537

of ITTOIA 2005 (gains from contracts for life insurance etc: top slicing relief).

 
 

Income Tax Bill
Part 15 — Income Tax Acts definitions etc
Chapter 2 — Other Income Tax Acts provisions

467

 

(3)   

If more than one of the provisions listed in subsection (4) applies in relation to

a person, a provision mentioned earlier in the list has priority over a provision

mentioned later in the list.

(4)   

The provisions are—

section 465A of ITTOIA 2005 (gains from contracts for life insurance etc to

5

be treated as highest part of total income),

section 404A of ITEPA 2003 (payments and other benefits on termination

of employment to be treated as highest part of total income), and

section 16 (savings and dividend income to be treated as highest part of

total income).

10

(5)   

The provisions listed in subsection (4) have priority over—

section 619A(2) of ITTOIA 2005 (income treated as highest part of settlor’s

total income),

section 701(6) and (7) (income treated as arising under Chapter 3 of Part

12 to be treated as highest part of total income),

15

section 719(6) and (7) (income treated as arising under Chapter 4 of Part

12 to be treated as highest part of total income), and

any other provisions of the Income Tax Acts requiring income of any

description to be treated as the highest part of a person’s total income.

(6)   

The effect of one provision having priority over another is that the second

20

provision has effect subject to the first.

947     

Territorial sea of the United Kingdom

The territorial sea of the United Kingdom is treated for the purposes of the

Income Tax Acts as part of the United Kingdom.

948     

Orders and regulations

25

(1)   

This section applies to all powers under the Income Tax Acts of the Treasury

or the Commissioners for Her Majesty’s Revenue and Customs to make orders

or regulations, other than excluded powers.

(2)   

All powers under the following are excluded—

(a)   

ICTA (see instead section 828 of that Act),

30

(b)   

section 178(5) of FA 1989 (setting of rates of interest),

(c)   

CAA 2001 (see instead section 570B of that Act),

(d)   

ITEPA 2003 (see instead section 717 of that Act),

(e)   

Part 4 of FA 2004 (see instead section 282 of that Act),

(f)   

ITTOIA 2005 (see instead section 873 of that Act), and

35

(g)   

the following provisions of this Act—

(i)   

section 184(3)(b) and (c) (EIS: the unquoted status requirement

(designated exchanges etc)),

(ii)   

section 295(3)(b) and (c) (venture capital trusts: the unquoted

status requirement (designated exchanges etc)), and

40

(iii)   

section 939(1)(b) (meaning of “recognised stock exchange”).

(3)   

Any orders or regulations made under a power to which this section applies

must be made by statutory instrument.

 
 

Income Tax Bill
Part 15 — Income Tax Acts definitions etc
Chapter 2 — Other Income Tax Acts provisions

468

 

(4)   

Any orders or regulations made under a power to which this section applies

are subject to annulment in pursuance of a resolution of the House of

Commons.

(5)   

Subsection (4) does not apply if the order or regulations are made under—

(a)   

section 73A of FA 2004 (exemption for designated international

5

organisations), or

(b)   

any of the following provisions of this Act—

(i)   

section 21(5) (indexation of starting rate limit and basic rate

limit),

(ii)   

section 57 (indexation of allowances),

10

(iii)   

section 114 or 735 (exclusion of amounts in calculating

individual’s contribution to the firm),

(iv)   

section 400(4)(e) (amounts treated as contributed by an

individual to investment partnership capital),

(v)   

section 830 (public revenue dividends: regulations about

15

collection of income tax),

(vi)   

section 895 (regulations modifying Chapter 15 of Part 14),

(vii)   

section 912 (designated international organisations: exceptions

from duties to deduct),

(viii)   

section 925(2)(e) (meaning of “bank”), or

20

(ix)   

section 963(2) (power to make transitional or saving provision

in connection with coming into force of this Act).

(6)   

Further, subsection (4) does not apply—

(a)   

if any other Parliamentary procedure is expressly provided to apply in

relation to the order or regulations, or

25

(b)   

if the order in question appoints a day for the purposes of any provision

of the Income Tax Acts from which the provision will have effect (with

or without amendments) or will cease to have effect,

   

and is also subject to any other provision to the contrary.

949     

Territorial scope of charges under certain provisions to which section 950

30

applies

(1)   

This section applies in relation to any amount chargeable to income tax under

or by virtue of any provision—

(a)   

to which section 950 applies, and

(b)   

which is listed in Part 2 or 3 of the table in that section (provisions not

35

in ITTOIA 2005).

(2)   

An amount arising to a UK resident is chargeable to tax whether or not it is

from a source in the United Kingdom.

(3)   

An amount arising to a non-UK resident is chargeable to tax only if it is from a

source in the United Kingdom.

40

(4)   

References in this section to amounts which are from a source in the United

Kingdom include, in the case of any amount which does not have a source,

references to amounts which have a comparable connection to the United

Kingdom.

(5)   

This section is subject to any express or implied provision to the contrary in any

45

provision of the Income Tax Acts.

 
 

 
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